A trader wants to open an oil shop in the Greater Jakarta area with a choice of the Bogor, Jakarta area or Bekasi. Each of these area options has a local supplier providing The price quote for the oil is detailed in the table below. area fixed cost variabel cost Bogor 5.500.000 55.046.00 Jakarta 11.500.000 35.500.00 Bekasi 21.500.000 15.500.00 Question: A. What is the large volume that must be met in order to get economic value per area? Define the volume range for each area. b. Sketch a crossover diagram that illustrates these conditions c. If in the end the merchant wants to sell as many as 600 cans at a selling price of Rp.60,000 per can, calculate the profit from each area. Where did the trader determine his location?
A trader wants to open an oil shop in the Greater Jakarta area with a choice of the Bogor, Jakarta area or Bekasi. Each of these area options has a local supplier providing The price quote for the oil is detailed in the table below. area fixed cost variabel cost Bogor 5.500.000 55.046.00 Jakarta 11.500.000 35.500.00 Bekasi 21.500.000 15.500.00 Question: A. What is the large volume that must be met in order to get economic value per area? Define the volume range for each area. b. Sketch a crossover diagram that illustrates these conditions c. If in the end the merchant wants to sell as many as 600 cans at a selling price of Rp.60,000 per can, calculate the profit from each area. Where did the trader determine his location?
Chapter18: Asymmetric Information
Section: Chapter Questions
Problem 18.10P
Related questions
Question
A trader wants to open an oil shop in the Greater Jakarta area with a choice of the Bogor, Jakarta area
or Bekasi. Each of these area options has a local supplier providing
The price quote for the oil is detailed in the table below.
area | fixed cost | variabel cost |
Bogor | 5.500.000 | 55.046.00 |
Jakarta | 11.500.000 | 35.500.00 |
Bekasi | 21.500.000 | 15.500.00 |
Question:
A. What is the large volume that must be met in order to get economic value per area? Define the volume range for each area.
b. Sketch a crossover diagram that illustrates these conditions
c. If in the end the merchant wants to sell as many as 600 cans at a selling price of Rp.60,000 per can, calculate the profit from each area. Where did the trader determine his location?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning